RISING UNEMPLOYMENT is putting an unanticipated drain on the health service budget and an additional €60 million shortfall has now arisen, the Joint Oireachtas Committee on Health heard yesterday.
HSE chief executive Prof Brendan Drumm told the committee that the HSE had a deficit of more than €1 billion.
It has already put in place a €663 million cost-reduction programme for 2009, and the HSE board will meet next week to decide how to tackle an additional €72 million shortfall.
Minister for Health Mary Harney told the committee that a further €60 million shortfall also had to be dealt with. The shortfalls were arising because of the fall in income from the health levy and the rise in applications for medical cards because of increasing levels of unemployment.
Prof Drumm said unemployment could also have a negative impact on people’s health and well-being, and this created greater demands on the health service.
Ms Harney said the transformation of the health service must not lose its momentum because of these financial concerns. “Rather, in my view, it makes the transformation of the health service more urgent, more important.”
The Minister said reducing the cost of drugs would be a priority, and she would be looking at a reduction in pharmacists’ fees by May.
Last month the Taoiseach said the Government would be seeking reductions of 8 per cent in professional fees. The Irish Pharmacy Union then made a submission to Ms Harney’s department, warning that such cuts would result in pharmacy closures and increased costs to the exchequer in the long term.
Asked about a redundancy programme to reduce HSE staff numbers, Ms Harney said she expected it would be addressed in next month’s budget.
Ms Harney and Prof Drumm answered a wide range of questions from committee members at the quarterly update on health issues.
Prof Drumm defended HSE spending on external consultants when the matter was raised by Labour deputy Kathleen Lynch. She pointed to a list of hundreds of projects awarded to external consultants from 2005 to the middle of last year. “What is the HSE doing employing this many consultants?”
Prof Drumm said he did not believe that spending €5.5 million on external consultants was excessive in an organisation with a yearly budget of €14.5 billion, and he said it was necessary to bring in expertise for certain projects.
Asked about the introduction of the cervical cancer vaccine, Ms Harney said she remained committed to the introduction of the vaccine “as quickly as possible”, but the cost and value had to be weighed up against other needs such as screening for colorectal cancer.
The Minister for Health is awaiting a health technology assessment on a colorectal screening programme, and will then decide on the introduction of such a programme.
Asked about waiting lists for people with brain tumours, Prof Drumm said brain tumours would now become a priority for cancer control in the same way that breast cancer was being targeted.
